Target Signs Office and Retail Outpost in Chelsea
Target is coming to lower Manhattan, the Commercial Observer has learned.
The company, traditionally known for its suburban retail super centers, will be opening a 24,000-square-foot office in Chelsea at 521 West 25th Street, Crain’s New York initially reported.
The deal also includes a 5,000-square-foot retail space at neighboring 511 West 25th Street for events and exhibitions.
Two teams from CBRE were responsible for the deal. David Kleinhandler and Michael Politi represented the tenant while Paul Amrich worked with Ross Zimbalist on behalf of the landlord, Related Companies. The brokers did not return calls for comment.
Target’s retail future in Manhattan below 95th Street remain unclear. The company already operates a store in East Harlem next to fellow suburban big box retailer Costco on 116th Street. Though, for the lower sections of Manhattan, executives might be leaning in favor of a smaller retail option as they’ve done in other cities.
In 2011, the company introduced CityTarget, designated as an “urban retail experience,” in Chicago’s historic and dense Loop. Several more have opened across the country in Seattle and a few Los Angeles neighborhoods.
The stores are approximately half the size of a regular big box Target, ranging from 80,000 to 100,000 square feet compared to the typical 150,000-square-foot outposts.
Target’s new office location in Chelsea, off 10th Avenue, and its established relationship with Related leaves much to be imagined as Related leads the way with the development of the Far West Side which could easily provide Target the square footage for a smaller CityTarget or a full blown Target in the Chelsea and Midtown market.